• Horizon Oil Limited
• Website: www.horizonoil.com.au

Industry:

Oil, Gas & Consumable Fuels

Fiscal Year-End:

Jun 10

HZN is involved in oil exploration, development and production. HZN has exploration operations in New Zealand, PNG, the US and China. It is involved in a small-scale production joint venture with Icon Energy in the US. HZN's major project is the Maari Oilfield Project.

Horizon Oil listed on the ASX in 1981. Since listing, the company has been primarily involved in oil exploration and production. In June 2003, the company sold its major New Zealand operations to Swift Energy.

HZN operates in the Energy sector. As an oil explorer, HZN tends to share the high risks by forming JVs with other explorers. Seismic surveys are used to pinpoint traps with the best chance of containing hydrocarbons. Oil and gas are found in sedimentary basins, typically in sandstone and limestone reservoirs. Producers drill wells into the reservoirs, with oil recovery normally in the 20%-40% range.

HZN has recently shifted its focus to lower risk exploration activities. The company differs from major oil and gas companies in that it does not aim to develop its own production facilities but concentrates on exploration. When a production opportunity arises, HZN seeks a joint venture arrangement with a production company.

Most oil is sold into global spot markets, whilst gas is typically sold under long-term contract arrangements with utilities, large industrial users and steel plants. Key competitors include Rio Tinto, BHP, CH4 Gas Ltd (CHX) and Bounty Oil & Gas (BUY).